NZ shares fall after Chinese economy slows
Fri, 13 Jul 2012 6:13p.m.
New Zealand shares fell, paced by the biggest companies on the bourse after figures showed China's economy slowed as expected while Singapore's contracted.
The NZX 50 Index fell 5.9 points, or 0.2 per cent, to 3495.40. Within the index, 17 stocks fell, 25 rose and 8 were unchanged. Turnover was $69.8 million.
China's gross domestic product expanded 7.6 per cent in the three months ended June 30 from a year earlier, the slowest pace since 2009, the National Bureau of Statistics said. That's down from 8.1 per cent in the March quarter. In Singapore, GDP shrank an annualised 1.1 per cent.
"The GDP figure out of China was as expected - but the New Zealand market really failed to fire," said Grant Williamson, director at Hamilton Hindin Greene.
"Instead we have spent the day consolidating."
Telecom, the largest company of the exchange, dropped 1.2 per cent to $2.55. Fletcher Building, the nation's biggest construction company, declined 1.8 per cent to $5.98.
Kathmandu, the outdoor clothing retailer, led the decline, down 2.8 per cent to $1.40. That was followed by children's clothing retailer, Pumpkin Patch shedding 2.3 per cent to 37 cents.
Michael Hill, the jewellery chain, fell 1 per cent to 98 cents.
Pyne Gould was unchanged on 24 cents. The High Court has ordered two independent observers to keep tabs on Perpetual Trust's cash management and mortgage funds amid concerns over related party loans, and ahead of a substantial hearing early next month.
Vector, the Auckland gas and electricity lines company, led gainers, rising 3 per cent to $2.72.
Xero, the cloud-based accounting services company which joined the NZX 50 last month, rose 2.9 per cent to $5.20.
"It is a very good product and has a decent market cap," Mr Williamson said.
"The company will have to start producing some significant earnings to warrant a (share) price that high."
Post a Comment
Before commenting, please take the time to read our moderation guide
(Won't be published)
A multi-million-dollar dispute involving one of the country'...
Mighty River Power shares have been floating around the $2.5...
There is encouraging news for the tourism industry today as ...
John Banks is calling for an inquiry into Zespri, after a Ch...
Around a dozen protesters picketed in front of a Wellington ...
Copyright © 2013 MediaWorks TV. All Rights Reserved.